First, Start With Turo’s Official “Carculator”
To help Turo hosts estimate their earnings when they rent out their car, the Turo team developed the “Carculator“.
This tool is specifically designed for certain cities in the United States and Canada, though an average calculation option is available for other locations.
Using the Carculator is simple – just input your car’s make, model, and year and you will receive an generalized estimate of how much you can make as a host.
The Carculator functions by leveraging market data specific to the user’s location to determine a daily rental rate for the car. It utilizes an Automatic Pricing algorithm that takes into account the make of the car and the demand in the local area.
The algorithm then generates a price estimate based on the assumption that the car will be available for a typical number of days and that every rental request received will be fulfilled.
The tool also factors in Turo’s 70% plan, where Turo retains 30% of the daily price for insurance and operational costs.
An additional feature of the Carculator allows users to choose between having renters pick up the car or dropping it off themselves. Cars that are delivered to renters tend to have higher booking rates.
Brett’s Take: Thoughts From an Expert
While the official Turo Carculator offers a quick and easy way to estimate potential income, it seems to make certain assumptions that don’t align with actual income, as it is based on general data and assumptions which may not apply to every host.
For example, it assumes constant vehicle availability and that all rental requests are accepted, which might not be realistic.
It also doesn’t account for personal expenses like maintenance, repairs, cleaning, and depreciation, which can significantly affect actual earnings.
I suggest also looking into third-party calculators, which allow users to adjust various factors like personal insurance costs, government reimbursements, gas prices, and more to better tailor the estimate to their specific circumstances.
Simple Turo Calculator for [Very] Rough Earnings Estimates
I found less complicated option for hosts that want to quickly estimate simple Turo earnings using very basic math.
While not nearly as advanced as the previous two Turo calculators, this will give rough estimates that you can dive into later.
Brett’s Take: Thoughts From an Expert
This Turo calculator is great for simple math, but I suggest using it for just that – simple estimates. It doesn’t take into account the large majority of host-specific factors that you’ll need to consider in order to make a profit as a host.
Powerful Third-Party Turo Calculator for Detailed Earnings Estimates
For those considering Turo hosting as an investment, a Reddit user created a very helpful tool has been developed to assess its profitability.
This tool, a Google Sheets template, allows users to input anticipated costs and revenue, aiding in calculating the potential return on investment for a vehicle used in Turo hosting.
Key features of the calculator include:
- Cost and Revenue Inputs: It accommodates various cost factors such as monthly interest and principal, as well as anticipated revenue. While the model does not amortize monthly payments, it provides a sufficient approximation for this purpose.
- Market-Based Estimations: Inputs for estimates should be tailored to reflect local market conditions, ensuring the calculations are relevant to the user’s specific situation.
- End-of-Rental Assumptions: The model assumes that the vehicle will be sold at the conclusion of the rental period, a significant factor in the ROI calculation.
Other Reddit users seemed to really like the calculator. The original post was filled with valuable community feedback, including discussions on factors like utilization rate, seasonal rate variations, depreciation, insurance costs, and the impact of different vehicle types on rental success.
This shows me that there’s a huge need for Turo hosts to easily calculate earnings. After all, a lot goes into evaluating the profitability of a Turo investment.
Alternative Ways to Price Your Turo Rental
While Turo’s Automatic Pricing algorithm offers a reliable method for setting your vehicle’s rental price, there are alternative strategies to consider for potentially better results.
1. Manually Analyze Comparable Turo Listings
A hands-on approach involves manually searching Turo for similar vehicles in your area.
This comparison gives you a practical benchmark for setting a competitive price. You can fine-tune your pricing based on these insights, potentially outperforming the algorithm’s suggestions.
However, since market demands fluctuate, this method doesn’t guarantee consistent success, but it does provide a snapshot of current competitive rates.
2. Compare with Other Peer-to-Peer Car Rental Platforms
Turo isn’t the only player in the peer-to-peer car rental market. Exploring platforms like Hyrecar, along with others like Fair Car Rental, Getaround, and Lyft Rentals, can offer valuable pricing perspectives.
For instance, if Turo’s algorithm sets a higher price than similar cars on Hyrecar, adjusting your Turo price to align with these competitors might increase your rental’s appeal.
Both these methods allow you the flexibility to adjust prices based on real-time market conditions and competitor strategies, providing an edge over solely relying on Turo’s automatic pricing.
The Highest Earning Cars on Turo
The exact amount your car earns on Turo depends on many factors. According to Turo’s data on more than 6 million bookings, several car models consistently make the most money in comparison to their average monthly payments.
You can use the Carculator to learn the specifics of your vehicle, but the following models are among the highest-earning cars on Turo:
- Jeep® Wrangler
- Fiat 500
- Ford Fiesta
- Smart Fortwo
The above models have a lower average car payment, making them profitable. But in terms of the highest pricing, you can also find luxury models such as Tesla, Mercedes, Porsche, and BMW going for the highest prices.
And the highest prices overall are in cities such as Los Angeles and San Francisco, where the demand for cars is among the highest.
Frequently Asked Questions
Is Renting Cars on Turo Profitable?
Renting cars on Turo can be profitable, but it varies based on your car model, payment, and chosen insurance plan. With plans offering 60-85% revenue retention but differing deductibles, profitability hinges on balancing trip price, insurance costs, and potential damage liabilities. Researching U.S. host protection plans is essential.
How Much Can You Make with Turo?
The average annual income from a single car on Turo is about $10,516, though this varies by car model and location. Using Turo’s calculator helps estimate earnings. Scaling up to nine cars can yield an average income of $94,642 annually, potentially turning it from a side hustle into a business.
What do you think of these Turo calculators? Do you have one that you like better than the ones we listed? Let us know by dropping a comment below!
On the information below how much would I pay to have the drop off in Ft lauderdale airport instead of Tampa?
What other fees would I be in store as you keep talking about a trip fee Turo charges?
Thank you
Price details
INCLUDED
$142 x 5 days
$710
Delivery fee
Free
3+ day discount
-$21
Est. trip total
$689
NOT YET INCLUDED (APPLIED AT CHECKOUT)
Young driver fee
Applies to all drivers under 26 years old
Protection plan
Includes liability insurance and physical damage protection options; you’ll select a plan when you’re checking out
Trip fee
This helps us run the Turo platform